In the middle of the growing dispute over protectionism and tariffs, one of the largest German automotive suppliers drives its renovation. The DAX group Continental from Hanover announced on Tuesday that the division of the company should continue than previously known. Accordingly, three independent companies that can be more flexible and – so the management – hopes for their respective markets are planned. Increasing competition and global cost pressure demanded a “focused, agile and determined action”, CEO Nikolai Setzer, who, according to the report spread on Tuesday, wants to “create and advance” until its completion. It is not in the message that he will, possibly the post in the coming year. However, it is generally expected that it should happen. The time has three business areas: firstly tires, secondly rubber products for the industry that are bundled in the “Contitech” division, and – thirdly – the division for software, electronics and sensors called “Automotive”. Conti had already decided to split off for the automotive division. It should be carried out in September. Separation should be completed next year. The board of directors has decided on a “independence” of the Sparte ContiTech, which produces conveyor belts, seals and other rubber products for industry and employs around 39,000 people. The separation is expected to carry out Conti next year. As “most likely option” does not apply to a IPO or “spin-off”, but a sale to third parties. The group leaves open whether financial investors or strategic partners are eligible. The exact plans would now be drawn up. The further split means the end of the DAX group in its current form. Among other things, it follows the logic that many major investors generally prefer “Pure Play” values, i.e. companies with a clearly outlined business model. Following this approach, for example, Daimler had divided into the car and van-transported Mercedes-Benz and the truck group Daimler Truck. According to the renovation after the renovation, Conti is said to be a pure tire manufacturer, which the management and the large shareholder- the Schaeffler industrial family- as an independent company, are more opportunities for “further profitable growth”. In the past financial year, according to the announcement with more than 57,000 employees, the division generated sales of around 13.9 billion euros. Review in the board conti also announces a reconstruction of the board. Accordingly, Ariane Reinhart will hand over her post as HR manager to Ulrike Hintze at the end of June. CEO Setzer takes on Reinhart’s responsibility for the topic of sustainability, it is said. In addition, Conti does not comment on Setzer’s future role. But it is clear that the position as CEO of a higher -level holding company is actually obsolete when the divisions and their respective management become independent. The origins of the 150 -year -old traditional company Continental are in the tire business. From the end of the 1980s, Conti had become a all -rounder for major customers in the auto industry such as VW, Ford or Mercedes by a variety of takeovers. When the demand from 2018 broke out to weakened and shortly afterwards Corona, Conti plunged into a deep crisis. More on the topic, there was a restructuring to the next, thousands of places were broken down. The share price has lost more than 70 percent of value since the high in January 2018. Finally, the upcoming trade war burdened the course, because Conti is represented with many works in Mexico and is therefore severely affected by US tariffs. On Tuesday morning, the share was over three percent of just under 60 euros.
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